Section 5
SEC. 5. All loans authorized under this Act shall be upon the security of a preferred mortgage on the vessel for the acquisition of which such loans are made, including its equipment, and the certificate or any other form of authorization for the operation of such vessels and the shipping service of the borrower. All said loans shall be self-liquidating within a period not to exceed twenty years and shall bear interest at the rate of not more than and one-half per cent per annum; Provided, however, That such loans shall not exceed seventy-five per cent of cost of the vessels: Provided, further, That such vessels shall be fully insured: Provided, finally, That no rights acquired under this Act by the vendee, lessee or charterer of the vessel shall, during the existence of the contractual agreement, be transferred or otherwise encumbered in favor of third parties without the consent of the National Development Company.